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Cited by 1Labor market dynamics and wage inequalityLabour Market and MigrationGender, Labor, and Family Dynamics

The Career Evolution of the Sex Gap in Wages: Discrimination vs. Human Capital Investment

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Neumark, David, Vaccaro, Giannina·2020·National Bureau of Economic Research
DOI 10.3386/w28191
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Abstract

Several studies find that there is little sex gap in wages at labor market entry, and that the sex gap in wages emerges (and grows) with time in the labor market.This evidence is consistent with (i) there is little or no sex discrimination in wages at labor market entry, and (ii) the emergence of the sex gap in wages with time in the labor market reflects differences between women and men in human capital investment (and other decisions), with women investing less early in their careers.Indeed, some economists explicitly interpret the evidence this way.We show that this interpretation ignores two fundamental implications of the human capital model, and that differences in investment can complicate the interpretation of both the starting sex gap in wages (or absence of a gap), and the differences in "returns" to experience.We then estimate stylized structural models of human capital investment and wage growth to identify the effects of discrimination (or other sources of a starting pay gap) and differences in human capital investment.

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  • Once accounting for the working sector, there are no effects through occupation composition.

    “Interestingly, as suggested by Neumark and Vaccaro (2020), once we account for the working sector, there are no effects through occupation composition.”

    From The Gender Wage Gap in Peru: Drivers, Evolution, and Heterogeneities (2022) · cites this paper as Neumark and Vaccaro (2020)

    In “OLS Wage Equation Estimates” (page unavailable), the paper reports that detailed occupation controls alone reduce the estimated wage gap at labor-market entry from about 8.5% to a small, statistically insignificant 1.3%. Adding industry controls then brings it to zero. It does not find that occupation composition has no effect once working sector is accounted for; its reported comparison points to an important role for occupation controls. (LLM, conf=0.82)

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Research works printed but not linked: 39

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Authors
Neumark, D., & Vaccaro, G.
Affiliations
National Bureau of Economic Research (US)
Corresponding author
Neumark, David
ORCID
Venue
National Bureau of Economic Research
Publisher
National Bureau of Economic Research
Published
2020-12
DOI
10.3386/w28191
OpenAlex
W3112605785
Cited by
1
References
0
Citations by year
2022: 1
Type
report
Language
en
Open access
Locations
  • National Bureau of Economic Research (publishedVersion)
  • SSRN Electronic Journal (acceptedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Funders
  • National Science Foundation
  • Schweizerischer Nationalfonds zur Förderung der Wissenschaftlichen Forschung
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
  • Social Sciences › Gender Studies › Labour Market and Migration
  • Social Sciences › Gender Studies › Gender, Labor, and Family Dynamics
Keywords
wage discrimination, human capital investment, returns to experience, wage growth, career evolution, labour market entry, gender pay gap

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